OTTAWA – The government has a warning for those who unduly apply for both Employment Insurance and the new Canada Emergency Response Benefit (CERB): we will find you, and we will recoup the money.
“We don’t think there is intent to fraud the system in most cases, but there will be some who will try to take advantage of it. We will know who got too much money, and we will go and ask for that money back at some point. It’s very highly likely that we will find them,” explained Janick Cormier, Director of Communications for the Minister of National Revenue, Diane Lebouthillier.
As of Monday, Canadians who have lost their revenue because of the COVID-19 pandemic can apply via the Canada Revenue Agency (CRA) to receive monthly payment of $2,000 for up to four months. This is being done through CERB, which was announced by the Trudeau government in late March.
But there are two ways to apply for the new benefit: either directly through the CRA’s website, or by applying for Employment Insurance (EI) — for those who are eligible — which will automatically be transferred into the CERB payments.
The main difference is that those eligible for EI will then be brought back onto the normal program when CERB runs out after 4 months.
But since different federal departments manage both programs, some Canadians have discovered that they can apply for both benefits and receive $4,000 (or double the normal payment) in the upcoming days.
That’s a no-no, says the federal government, and those who do will be expected to reimburse the overpayment.
As of now, the government is still figuring out how it will recoup any overpayments to Canadians who applied simultaneously for EI and CERB.
But according to a source privy to internal government affairs, the most serious avenue currently being considered is to claw back any overpayments on future CERB cheques.
In other words, if you received double the payment this month, then you may not receive any money next month to compensate, explained the source, which was granted anonymity so as to discuss internal deliberations publicly.
Identifying those who receive a double payment will be rather simple, Cormier added, since applicants have to provide a Social Insurance Number (SIN) when applying for either EI or CERB.
So when comes the time to identify double dippers, CRA (which administers CERB) and Employment and Social Development Canada (which administers EI) will simply cross-reference their lists of SINs and see who appears twice since March 15. That’s the official starting date for financial aid programs related to COVID-19 pandemic.
“Know that we are matching the SINs and we will know who got too much money,” Cormier warned.
As for those who have already applied to both, the minister’s office recommends to “put the extra $2,000 aside and wait further instructions.”
• Email: cnardi@postmedia.com | Twitter: ChrisGNardi
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'We will know who got too much': Don't try to double dip with CERB, federal government warns - National Post
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